Why Cape Verde should be on your investment radar

Monday 31st October 2016

Written by Roy Weatherby, The Overseas Investor

Cape Verde is known for its year-round sunshine, stunning coastline and easy access from the UK, making it a great place to invest. Property on the island can offer positive rental returns and with many of the properties being available on high occupancy resorts.

If you are considering investing in a property on the island, then the following advice should help you to make your mind up.

The tourism sector on the island is growing and this is leading to a rise in demand for rental property on the island that range from private villas to holiday resorts located on the beach front. If the numbers continue to grow- and they are predicted to continue to increase, then the buy-to-let market will also thrive.

A large number of the properties available can be found in resorts. There are a number of smaller hotels but the truth is that a large number of holiday properties on the island can be found on resorts. These large hotels, owned by international companies are taking advantage of the increase in demand and so they offer accommodation that is of an exceptional standard.

One of the most important factors to consider is the appeal that the island will have in many years’ time. When it comes property, it is too easy for many areas to take advantage of the demand and so they end up becoming over-developed and this leads to a loss of appeal and beauty. Cape Verde is protected from this and so only low lever and low density projects can go ahead and this protects the appeal of the island along with the number of properties that can be built and so it will help demand to remain high.

To encourage the success of investment, there are management schemes in place. Through signing up to such schemes, investors will provide the support they need to enable them to run a property investment located overseas and this will include the cover of bookings through to maintaining the property.

For property investments made on resorts that are managed by operators that are widely known will have the option to become part of a hotel management scheme that will provide them with a number of benefits and opportunities. The benefits of these properties is that they are likely to be marketed around the world as these resorts are offered by travel agents and tour operators from everywhere and so, exposure is high along with the occupancy levels.

The island of Sal is the popular choice when it comes to property investments. The number of visitors to the island has been on the increase and the success of the holiday property market in Cape Verde is attributed to this. Over one million tourists have visited the two largest resorts on the island and this has lead developers to look at the possibility of building resorts on the island of Boar Vista which is touted to be the next place to invest in property.

For more information or to browse a range of investments in Cape Verde, please contact Hopwood House.